Initiating Coverage on IGL

Indraprastha Gas Ltd.
BUY
- 1 - Monday, 22
nd
February, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
STOCKPOINTER
Target Price `691 CMP `528 FY17E P/E10.7x
Index Details We believe that IGL represents a compelling story to play the City Gas
Distribution (CGD) business. The recent SC directive led traction around
reducing pollution in the NCR region should provide a fillip to CNG gas
volumes. Also with only 16% out of 40+ lakh households receiving piped
gas, there exists significant scope for continuous growth of PNG
volumes. Further, investments in other CGD geographies and bids for
new geographies should improve visibility around sustainable growth
over the medium to long term.
At the CMP of Rs 528, IGL is available at 10.6X FY18 earnings. We
initiate coverage on IGL with a BUY with a target price of Rs 691 (14X
FY18 EPS of Rs 49.4) representing a potential upside of 31% over next
18 months.
Our optimism stems from the following:
 Over the period FY12-FY15, CNG volumes have been growing at a
lacklustre 4% CAGR. But with the SC verdict, a sweeping change in
the fuel consumption pattern is expected with a substantial ramp up
in CNG sales volumes. We expect CNG sales to grow at a 13% CAGR
to Rs 4,339.8 crore in FY18 from Rs 3,002.42 crore reported in FY15
given that
 No new diesel passenger vehicles will not be registered in Delhi,
 Registration of diesel vehicles more than 10 years old will not be
renewed,
 Entry tax (on diesel CVs) has been raised,
 There could be a complete ban on entry of diesel vehicles once the
necessary infrastructure has been created.
 Delhi and Pune pollution levels are at alarming level and thus may
push NGT to adopt CNG aggressively.
 Conversion of CV into CNG growing at a brisk pace
 Renewed thrust on improved public transport to lead to higher
demand for CNG buses
 CNG stations to get a fillip with the SC decision
Sensex 23,789
Nifty 7,234
Industry Oil and Gas
Scrip Details
MktCap (` cr) 7,393
BVPS (`) 149.9
O/s Shares (Cr) 14
AvVol 0.4
52 Week H/L 607/376
Div Yield (%) 1.1
FVPS (`) 10.0
Shareholding Pattern
Shareholders %
Promoters 45.0
DIIs 21.6
FIIs 20.5
Public 12.9
Total 100.0
IGL vs. Sensex
0
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0
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Feb15
Mar15
Apr15
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Sensex IGL
of Key Financials (` in Cr)
Y/E Mar
Net
Sales
EBITDA PAT
EPS
(`)
EPS
Growth (%)
RONW
(%)
ROCE
(%)
P/E
(x)
EV/EBITDA
(x)
2015 3,681.0 797.7 437.7 31.3 21.5 20.9 30.5 16.9 9.1
2016E 4,026.2 817.3 447.9 35.2 12.5 19.8 26.6 15.0 8.9
2017E 4,509.4 967.3 577.5 41.6 18.4 19.7 26.9 12.7 7.5
2018E 5,254.3 1,132.3 680.8 49.4 18.7 19.6 25.9 10.7 6.4

- 2 - Monday, 22
nd
February, 2015
 We expect PNG demand to grow at a CAGR of 7.9% to 41.5 crore SCM
by FY18. Consequently, revenues are expected to grow at a CAGR of
11.5% to Rs 1,453 crore by FY18. The triggers for volume growth are as
under
 Significant latent demand waiting to be tapped
 Falling prices should boost CNG usage by industrial and
commercial consumers
 NCR household growth signifies strong demand potential
 Exploration in newer cities to drive incremental revenue growth
 Revenues from CUPGL, Kanpur are expected to grow at a CAGR of
7% to Rs 228 crore by FY18 from Rs 186.8 crore in FY15 and PAT is
expected to grow at a CAGR of 3.5% to Rs 30.5 crore from Rs 26.2
crore in FY15 over the same period
 Revenues from MNGL are expected to grow at a CAGR of 17% to Rs
742 crore by FY18 from Rs 455.8 crore in FY15 and PAT is expected
to grow at a CAGR of 21% to Rs 90 crore crore from Rs 50.6 crore in
FY15 over the same period
 Submitted bids to supply CNG into three new locations viz; Revadi,
Yamunanagar and North Goa. These steps towards geographical
diversification would benefit the company in the long run as its core
NCR region is increasingly becoming saturated after 16 years of
operation.

- 3 - Monday, 22
nd
February, 2015
 Company Background
Incorporated in 1998, IGL took over the Delhi City Gas Distribution Project in 1999
from GAIL (India) Limited. IGL continues to augment its infrastructure so as to
meet the increasing demand of CNG arising out of growing number of CNG
vehicles in Delhi. The growth drivers for increase in demand of CNG are - car
manufacturers coming up with CNG variants and Delhi Government’s directive
making it mandatory for all LCVs operating in Delhi to run on CNG.
On the PNG front, IGL has planned to expand its business activities in Delhi and its
neighboring towns like Noida, Greater Noida and Ghaziabad. IGL is also working
towards expanding its PNG network to cover all charge areas of Delhi. Industrial
and commercial segments would be the focus areas for the organization in the
future.
 Key Investment Highlights
 CNG volumes get fillip from SC dictate
Over the period FY12-FY15, CNG volumes have been growing at a lacklustre 4%
CAGR. But with the SC verdict, a sweeping change in the fuel consumption pattern
is expected with a substantial ramp up in CNG sales volumes. We expect CNG
volumes to grow at 8% CAGR to 136.3 crore kgs in FY18 from 107.3 crore kgs in
FY15.
Our bullishness stems from the following.
CNG Volumes to grow at CAGR of 8%
0
20
40
60
80
100
120
140
160
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Kgs (in cr)
Source: Indraprastha Gas Ltd, Ventura Research

- 4 - Monday, 22
nd
February, 2015
 Laws discouraging usage of diesel vehicles to give impetus to CNG vehicle
sales
A string of developments to lower usage of diesel as a fuel have been introduced
1.The National Gas Tribunal (NGT) has ruled that new diesel passenger
vehicles will not be registered in Delhi,
2. Registration of diesel vehicles more than 10 years old will not be renewed,
3. To discourage entry of diesel commercial vehicles in the NCR region the
entry tax (on diesel CVs) has been raised,
4. At the same time the local government has also indicated that there could be
a complete ban on entry of diesel vehicles once the necessary infrastructure
has been created. This would boost demand for smaller CNG compliant
SCVs which would serve as feeder vehicles for local transportation
5. Delhi and Pune pollution levels are at alarming level and thus may push NGT
to adopt CNG aggressively.
Sharp growth in vehicle population has raised pollution to alarming levels
Sl. Years Annual Growth No. of Vehicles Per
No Number Increase (Per cent) 1000 Population
1 1999-00 31,63,565 1,42,582 4.72 253
2 2000-01 33,75,153 2,11,588 6.69 244
3 2001-02 36,17,853 2,42,700 7.19 256
4 2002-03 38,86,072 2,68,219 7.41 270
5 2003-04 41,60,760 2,74,688 7.07 284
6 2004-05 44,67,154 3,06,394 7.36 299
7 2005-06 48,30,136 3,62,982 8.13 317
8 2006-07 52,32,426 4,02,290 8.33 337
9 2007-08 56,27,384 3,94,958 7.55 356
10 2008-09 60,26,561 3,99,177 7.09 374
11 2009-10 64,66,713 4,40,152 7.3 393
12 2010-11 69,47,536 4,80,823 7.44 415
13 2011-12 74,52,985 5,05,449 7.27 436
14 2012-13 77,85,608 3,32,783 4.46 446
15 2013-14 82,58,284 4,72,676 6.07 465
16 2014-15 88,27,431 5,69,147 6.89 487
Vehicles
Source: Delhi Economic Survey 2014-15, Ventura Research

- 5 - Monday, 22
nd
February, 2015
These developments should speed up acceptance of CNG as fuel resulting in
healthy volume off take.
 Conversion of CV into CNG growing at a brisk pace
Until now conversion of petrol / diesel vehicles to CNG has been growing at a
subdued pace. However since the SC ban, as per IGL sources, there has been a
pick up in demand for CNG kits by ~25% mom (average conversion rate to CNG is
~3500 vehicles per month).
And with the 15 day “odd-even rule” trial period having inconvenienced commuters,
we expect this trend to pick up going forward. If the odd - even rule is implemented
post the examination months (which is strongly gaining favour) there would be a
further spike in the monthly conversions to CNG compliant vehicles.
No of CNG Vehicles in NCR, Delhi
Mar 12 Mar 13 Mar 14 Mar 15 Jun 15
Buses 18,839 18,826 19,566 19,421 19,639
Auto/LGV 1,59,123 1,93,852 2,06,352 2,28,002 2,33,072
RTV 13,007 14,062 14,039 13,538 13,434
Cars/Taxi 3,59,176 4,60,926 5,14,801 5,56,156 5,69,794
Total 5,50,145 6,87,666 7,54,758 8,17,117 8,35,939
NCR pollution woes have reached epic levels
S. No Years SO2 NO2 CO RSPM (PM)
1 2004-05 8.8 55.9 2541 168
2 2005-06 10.2 55.9 2531 177
3 2006-07 4 38 2460 161
4 2007-08 5 43.1 2461 201
5 2008-09 5 47.3 1768 248
6 2009-10 5 46 1937 249
7 2010-11 15 66 2020 281
8 2011-12 18.2 82.4 2020 293
9 2012-13 20.1 77.5 2100 282
10 2013-14 16.9 79 1700 318
Standard 50 40 2000
Ambient Air Quality (µg/m3)
s Source: Delhi Economic Survey 2014-15, Ventura Research

- 6 - Monday, 22
nd
February, 2015
 Renewed thrust on improved public transport to lead to higher demand for
CNG buses
Nearly 20,000 buses ply on the roads of Delhi. Off this, DTC owns and operates
around 5,000, private operators (cluster buses, where fares are determined by
DTC) operate around 1,800 buses and balance comprises of private buses such as
those deployed by schools and corporates. Although the existing bus fleet
constitutes a paltry 4% of the total vehicles, they consume around ~200-225 m kg
of CNG annually (or 25-27% of IGL’s overall CNG sales). Addition of the stipulated
shortfall alone can ramp up CNG volumes significantly.
There is an estimated shortage of 5500-6000 buses for DTC alone. This represents
an opportunity for traction in CNG volumes given that
Bus distribution in Delhi
CNG
98%
Others
2%
Significant scope for enhanced usage of CNG as a fuel
CNG
19%
Others
81%
Cars and
Jeeps
27,90,566
32%
Motor
Cycles &
Scooters
56,81,265
64%
Buses and
Others
3,55,600
4%
No of units Significant
Addressable
Market for CNG
Source: Delhi Economic Survey 2014-15, Indraprastha Gas Ltd, Ventura Research

- 7 - Monday, 22
nd
February, 2015
 the Delhi state government has plans to hire around 4000- 6000 private buses
(used for school/ office drop etc) immediately at a fixed charge for public
transport
 it has also floated a global tender to add 1,500 new CNG buses by H1FY17;
 CNG stations to get a fillip with the SC decision
The SC has decreed that by March 16, 100 existing petrol stations owned by the
PSU marketing companies should allow IGL to establish CNG dispensing units at
these pumps to improve the availability of CNG within the city. This decree comes
as a shot in the arm for IGL, as it was having difficulty sourcing land for its CNG
stations within the city limits.
The cost of these units would be not be more than INR 1.5 to 2 crore and we
believe that this should provide a good fillip to CNG volumes with immediate effect.
We believe that all the the above should help IGL post a healthy volume growth of
8% CAGR to 136.3 crore kgs by FY18. Consequently, CNG revenues are expected
to grow at a CAGR of 13% to Rs 4,339 crore by FY18.
Growth in CNG stations by IGL
Particulars Unit Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Jun 15
No of CNG stations Number 278.0 308.0 324.0 325.0 326.0 326.0
Compression Capacity Lakh kg/day 51.1 59.6 63.8 66.2 68.5 68.5
Average CNG Sale Lakh kg/day 16.7 19.2 20.7 21.2 22.1 22.2
CNG revenue to grow at 13% CAGR
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Rs in
Cr
Hardly any traction in gas filling stations

- 8 - Monday, 22
nd
February, 2015
 PNG is preferred choice of fuel
The convenience associated with PNG has already established it as the preferred
fuel and its demand is growing in domestic, commercial as well as industrial
segments. We expect PNG demand to grow at a CAGR of 7.9% to 41.5 crore SCM
by FY18. Consequently, revenues are expected to grow at a CAGR of 11.5% to Rs
1,453 crore by FY18 given that
1. Significant latent demand waiting to be tapped
Currently, there are ~40+ lakh households in Delhi of which 6.5 Lakh are PNG
users with average consumption by each household of ~0.5 scm per day. GAIL
being the gas supplier not only assures IGL of receiving firm quantities but also
ensures priority supply in the event of any stoppage / disruption in domestic gas
supply. Firm allocation of domestic gas for the region allows IGL to provide
uninterrupted supply of PNG to domestic households at competitive rates.
PNG Volumes to grow at a CAGR of 5%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16EFY17EFY18E
SCM (in cr)
PNG Revenues to grow at a rapid pace
0
200
400
600
800
1000
1200
1400
1600
Rs in
Cr
PNG users in Delhi
Mar 12 Mar 13 Mar 14 Mar 15 Jun 15 Mar 16E
Domestic 3,32,844 3,86,696 4,59,467 5,60,752 5,76,566 6,40,863
Commercial 862 1,382 1,876 2,292 2,371 2,612
Total 3,33,706 3,88,078 4,61,343 5,63,044 5,78,937 6,43,475

- 9 - Monday, 22
nd
February, 2015
2. Falling prices should boost CNG usage by industrial and commercial
consumers
In order to cater to the growing gas demand of industrial & commercial consumers,
IGL is procuring R-LNG, both on term & spot basis. In this regard, besides having
gas supply tie ups with GAIL and BPCL, IGL has signed a framework gas supply
agreement with other major R-LNG suppliers viz Shell Hazira LNG, IOCL and
GSPCL. Besides the new revised gas agreement with RasGas of Quatar on
favorable terms for lower prices should boost India’s gas economy.
3. NCR household growth signifies strong demand potential
Over the past two decades, NCR households have been growing at a rapid rate of
30%. We expect this growth to continue at above 20% over next the decade as
well. This complies significant growth in PNG demand in the near future.
Rapid growth of residential household in NCR augurs well for PNG volumes
Sl. Years Households Growth Residential Houses Growth Difference
No (Lakh) (%) (Lakh) (%)
1 1991 18.62 17.14 1.48
2 2001 25.54 37.2% 23.17 35.2% 2.37
3 2011 33.41 30.8% 31.76 37.1% 1.65
Source: Delhi Economic Survey 2014-15, Ventura Research
PNG Distribution network in Delhi

- 10 - Monday, 22
nd
February, 2015
 Exploration in newer cities to drive incremental revenue growth
IGL has been expanding its distribution network in newer cities in order to ramp up
its revenue growth.
1. It has acquired 50% stake in Central UP Gas Limited (CUGL) that supplies CNG
and PNG in and around Kanpur and Bareilly in Uttar Pradesh.
2. IGL has also acquired a 50% stake in the Maharashtra Natural Gas Limited
(MNGL) in FY15 for Rs 1.9 billion that distributes CNG and PNG in Pune. It is
expected that demand for CNG and PNG in Pune would escalate as Pune is the
fastest growing city in India today.
3. IGL has submitted bids to supply CNG in three new locations viz; Revadi,
Yamunanagar and North Goa. GAIL (promoter of IGL holding 22.5% stake)
already has a gas pipeline in North Goa.
Financial highlights of MNGL
Particulars FY13 FY14 FY15 FY16E FY17E FY18E
Net Sales 182.3 346.2 455.8 547.0 645.4 742.2
EBITDA 58.7 96.0 98.8 120.3 138.8 167.0
EBITDAM 32% 27% 22% 22% 22% 23%
Interest 1.6 4.7 5.4 7.1 9.0 9.6
PBDT 57.1 91.3 92.5 115.4 133.0 161.1
Depreciation 7.2 8.8 14.6 19.1 23.9 26.7
PBT 49.9 82.5 77.9 96.3 109.1 134.3
Tax exp 11.4 28.4 27.3 33.7 37.1 44.3
PAT 38.5 54.1 50.6 62.6 72.0 90.0
PATM 21% 16% 11% 11% 11% 12%
Financial highlights of CUPGL
Particulars FY13 FY14 FY15 FY16E FY17E FY18E
Net Sales 148.0 195.2 191.1 197.5 210.1 228.8
EBITDA 51.1 46.6 48.1 46.6 49.0 53.8
EBITDAM 34% 24% 25% 24% 23% 24%
Interest 11.9 0.4 0.0 0.0 0.0 0.0
PBDT 39.1 46.2 48.1 46.6 49.0 53.8
Depreciation 7.6 8.2 6.4 6.9 7.8 8.2
PBT 31.5 38.0 41.7 39.7 41.2 45.5
Tax exp 10.5 13.0 14.2 13.5 14.0 15.0
PAT 21.0 25.1 27.5 26.2 27.2 30.5
PATM 14% 13% 14% 13% 13% 13%

- 11 - Monday, 22
nd
February, 2015
These steps towards geographical diversification would benefit the company in the
long run as its core NCR region is increasingly becoming saturated after 16 years of
operation.
 Key Risks
 End of exclusivity agreement to attract competition in NCR region
IGL’s exclusivity to retail CNG to automobiles and piped cooking gas to households
in the National Capital has expired on January 1, 2012. Subsequent to this, the
company’s city gas distribution (CGD) network of pipelines is to be opened for
access by third parties. This can lead to higher competition in CNG distribution
network pressurizing the volumes of CNG sales for IGL. However, third parties
have to pay distribution fees to IGL.
 Demand is elastic to pricing of fuel
Any sharp increase in prices of Natural Gas would impact conversion of CNG and
lower incentive to shift to PNG impacting volumes

- 12 - Monday, 22
nd
February, 2015
 Financial Performance
IGL reported muted numbers during Q3FY16. Its net sales decreased by 1.6% YoY
to Rs. 929.2 crores. However, EBITDA de-grew marginally by 2% YoY to Rs. 187.3
crores as the company was able to maintain its margin at 20%. PAT decreased by
3% YoY to Rs. 105.1 crores. Depreciation increased due to expansion of operations
in Delhi and NCR region however, reduction in interest cost supported PAT during
the quarter.
In FY15, net sales stood at Rs. 3,681.0 crores, registering a degrowth of 6% YoY.
Its EBITDA, however, increased to Rs. 793 crores, while margins expanded by 150
bps YoY to 21.5%. PAT grew by 22% YoY to Rs. 437.7 crores, led by a decrease in
depreciation to Rs. 148.7 crores and lower finance costs. PAT margin expanded
270 bps to 11.9%
Quarterly Financial Performance (Rs crores)
Description Q3FY16 Q3FY15 FY15 FY14
Net Sales 929.2 944.4 3,681.0 3,913.8
Growth -1.6% -5.9%
Total expenditure 741.9 752.4 2,888.0 3,131.4
EBITDA 187.3 192.0 793.0 782.4
Margin 20.2% 20.3% 21.5% 20.0%
Depreciation 39.9 37.6 148.7 219.5
EBIT (Ex. OI) 147.4 154.5 644.3 562.9
Non-Operating Income 11.2 11.4 34.5 21.1
EBIT 158.6 165.8 678.9 583.9
Margin 17.1% 17.6% 18.4% 14.9%
Finance Cost 1.8 6.3 29.8 44.1
Exceptional Items 0.0 0.0 0.0 0.0
PBT 156.9 159.5 649.0 539.8
Margin 16.9% 16.9% 17.6% 13.8%
Prov. for Tax 51.7 51.3 211.3 179.5
PAT 105.1 108.2 437.7 360.3
Margin 11.3% 11.5% 11.9% 9.2%

- 13 - Monday, 22
nd
February, 2015
 Financial Outlook:
With continuous improvement in CNG demand and ramp up in new PNG customers
from existing areas, the growth trajectory in revenues (3 Yr CAGR of 13% to Rs
5,288 by FY18) should continue. IGL is expected to be the biggest beneficiary from
the SC dictate to ban new diesel vehicle registration, higher conversion of diesel
vehicles to CNG, increase in the DTC bus fleet and Delhi government’s thrust on
reducing air pollution. We expect net consolidated profit after tax to grow at a CAGR
of 15% to Rs 673.4 crore over the same period. The EBITDA margins (ex OI) and
PAT margins are expected to be at 21.6% and 12.7% respectively.
The consolidation of revenues from CUGL and MNGL with IGL will further lead to
increase in consolidated profit. This will further enable improvement in RoE and
RoCE of the company.
Consolidated Revenue, Gross and PAT margins
0
5
10
15
20
25
30
35
40
0
1000
2000
3000
4000
5000
6000
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16E
Mar17E
Mar18E
Net Sales EBITDA Margin PAT Margin
%Rs in Cr
RoCE and RoE to remain steady
0
5
10
15
20
25
30
35
40
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16E
Mar17E
Mar18E
ROE ROCE
%
Net working capital (in days)
0
10
20
30
40
50
60
70
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16E
Mar17E
Mar18E
Debtor Days Creditor Days Inventory Days
No of days
IGL to soon be debt free
0
0.1
0.2
0.3
0.4
0.5
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16E
Mar17E
Mar18E
D/E

- 14 - Monday, 22
nd
February, 2015
 Valuation
We initiate coverage on Indraprastha Gas Ltd as a BUY with a price objective of Rs
691 representing a potential upside of 31% from the CMP of Rs 528 over a period
of 18 months. We have used the PE multiple approach to value IGL and assigned a
multiple of 14X on FY18 consolidated EPS of Rs 49.4 to arrive at the target price.
We are upbeat on strong volume growth of gas off take given that :
 Deterrent laws to discourage use of diesel capacity to a switch to CNG
 Conversion of CNG growing at a brisk pace
 Renewed thrust on improving public transport to lead to higher demand for
CNG buses
 Availability of CNG dispensing centers
 Increasing demand for PNG in domestic as well as commercial industry
 Exploration into newer cities to drive incremental revenue growth
IGL P/E Trend
110
210
310
410
510
610
710
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16
CMP 10X 13X 16X 19X 22X
IGL EV/EBITDA Trend
3,700
4,200
4,700
5,200
5,700
6,200
6,700
7,200
7,700
8,200
8,700
Mar-14 Jul-14 Nov-14 Mar-15 Jul-15 Nov-15
EV 7X 8X 9X 10X 11X
IGL P/B Trend
110
210
310
410
510
610
710
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16
CMP 3X 3.5X 4X 4.5X 5X

- 15 - Monday, 22
nd
February, 2015
Financials and Projections
Y/E March, Fig in ` Cr FY15 FY16E FY17E FY18E Y/E March, Fig in ` Cr FY15 FY16E FY17E FY18E
Profit & Loss Statement Per Share Data (Rs)
Net Sales 3681.0 4026.2 4509.4 5254.3 Adj. EPS 31.3 35.2 41.6 49.4
% Chg. 9.4 12.0 16.5 Cash EPS 41.9 47.4 56.5 67.7
Total Expenditure 2883.3 3208.9 3542.1 4122.0 DPS 6.0 6.0 7.0 7.0
% Chg. 11.3 10.4 16.4 Book Value 149.9 177.8 211.0 252.0
EBDITA 797.7 817.3 967.3 1132.3 Capital, Liquidity, Returns Ratio
EBDITA Margin % 21.7 20.3 21.5 21.6 Debt / Equity (x) 0.1 0.0 0.0 0.0
Other Income 34.5 28.2 36.1 39.4 Current Ratio (x) 0.9 0.9 0.9 0.9
PBDIT 832.3 845.5 1003.3 1171.7 ROE (%) 20.9 19.8 19.7 19.6
Depreciation 148.7 171.1 207.7 256.9 ROCE (%) 30.5 26.6 26.9 25.9
Interest 34.5 5.9 0.0 0.0 Dividend Yield (%) 1.1 1.1 1.3 1.3
Exceptional items 0.0 0.0 0.0 0.0 Valuation Ratio (x)
PBT 649.0 668.5 795.7 914.8 P/E 16.9 15.0 12.7 10.7
Tax Provisions 211.3 220.6 262.6 283.6 P/BV 3.5 3.0 2.5 2.1
Reported PAT 437.7 447.9 533.1 631.2 EV/Sales 2.0 1.8 1.6 1.4
Share of Associates 0.0 0.0 44.4 49.6 EV/EBIDTA 9.1 8.9 7.5 6.4
PAT 437.7 447.9 577.5 680.8 Efficiency Ratio (x)
PAT Margin (%) 11.9 11.1 12.8 13.0 Inventory (days) 4.1 4.7 5.0 4.8
Other opr Exp / Sales (%) 0.9 0.7 0.8 0.8 Debtors (days) 23.3 23.0 25.0 24.0
Tax Rate (%) 32.6 33.0 33.0 31.0 Creditors (days) 23.9 22.0 23.5 23.0
Balance Sheet Cash Flow Statement
Share Capital 140.0 140.0 140.0 140.0 Profit Before Tax 649.0 668.5 795.7 914.8
Reserves & Surplus 1958.1 2349.6 2814.7 3388.5 Depreciation 148.7 171.1 207.7 256.9
Minority Interest 0.0 0.0 0.0 0.0 Working Capital Changes 41.1 1.0 -27.3 -115.9
Long Term Borrowings 145.3 45.3 0.0 0.0 Others -175.1 -242.8 -298.6 -323.0
Deferred Tax Liability 127.2 50.7 63.0 62.4 Operating Cash Flow 663.8 597.7 677.4 732.8
Other Non Current Liabilities 11.3 16.2 14.9 44.0 Capital Expenditure -214.8 -439.5 -471.3 -633.2
Total Liabilities 2381.9 2601.8 3032.5 3634.9 Other Investment Activities -148.9 -22.6 -85.9 -46.0
Gross Block 3176.1 3615.7 4087.0 4720.2 Cash Flow from Investing -363.7 -462.2 -557.2 -679.2
Less: Acc. Depreciation 1220.3 1391.4 1599.1 1856.0 Changes in Share Capital 0.0 0.0 0.0 0.0
Net Block 1955.8 2112.3 2386.9 2792.6 Changes in Borrowings -207.2 -100.0 -45.3 0.0
Capital Work in Progress 254.1 304.9 426.9 512.3 Dividend and Interest -120.0 -106.7 -117.6 -117.6
Other Non Current Assets 249.7 294.1 343.6 403.9 Cash Flow from Financing -327.2 -206.7 -162.9 -117.6
Net Current Assets -90.2 -121.9 -137.3 -86.4 Net Change in Cash -27.1 -71.2 -42.7 -64.0
Long term Loans & Advances 12.5 12.5 12.5 12.5 Opening Cash Balance 299.0 271.9 200.7 158.0
Total Assets 2381.9 2601.8 3032.6 3634.9 Closing Cash Balance 271.9 200.7 158.0 94.0

- 16 - Monday, 22
nd
February, 2015
Disclosures and Disclaimer
Ventura Securities Limited (VSL) is a SEBI registered intermediary offering broking, depository and portfolio management services to clients. VSL is member of
BSE, NSE and MCX-SX. VSL is a depository participant of NSDL. VSL states that no disciplinary action whatsoever has been taken by SEBI against it in last
five years except administrative warning issued in connection with technical and venial lapses observed while inspection of books of accounts and records.
Ventura Commodities Limited, Ventura Guaranty Limited, Ventura Insurance Brokers Limited and Ventura Allied Services Private Limited are associates of VSL.
Research Analyst (RA) involved in the preparation of this research report and VSL disclose that neither RA nor VSL nor its associates (i) have any financial
interest in the company which is the subject matter of this research report (ii) holds ownership of one percent or more in the securities of subject company (iii)
have any material conflict of interest at the time of publication of this research report (iv) have received any compensation from the subject company in the past
twelve months (v) have managed or co-managed public offering of securities for the subject company in past twelve months (vi) have received any
compensation for investment banking merchant banking or brokerage services from the subject company in the past twelve months (vii) have received any
compensation for product or services from the subject company in the past twelve months (viii) have received any compensation or other benefits from the
subject company or third party in connection with the research report. RA involved in the preparation of this research report discloses that he / she has not
served as an officer, director or employee of the subject company. RA involved in the preparation of this research report and VSL discloses that they have not
been engaged in the market making activity for the subject company. Our sales people, dealers, traders and other professionals may provide oral or written
market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. We may have earlier issued or
may issue in future reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing
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of the clients / prospective clients of VSL. VSL will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of clients / prospective clients. Similarly, this document
does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive
this document. The securities discussed in this report may not be suitable for all investors. The appropriateness of a particular investment or strategy will
depend on an investor's individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether
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his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the
securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can
be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results,
and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report
independently of the Company. These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally
accepted accounting principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You
should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by VSL, its associates, the authors of this
report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the
projections and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such
projections and forecasts. The price and value of the investments referred to in this document/material and the income from them may go down as well as up,
and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of
original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be
subject to change without notice. We do not provide tax advice to our clients, and all investors are strongly advised to consult regarding any potential
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No representation or warranty, express or implied is made that it is accurate or complete. VSL has reviewed the report and, in so far as it includes current or
historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this
document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change. This report or
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The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of VSL and are given as of
this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no
assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in
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document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections
contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising
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unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as
prescribed by Securities and Exchange Board of India before investing in Securities Market.
Ventura Securities Limited
Corporate Office: C-112/116, Bldg No. 1, Kailash Industrial Complex, Park Site, Vikhroli (W), Mumbai – 400079

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